Commonhold and share of freehold

Is commonhold equivalent to freehold ownership? What is freehold leasehold and commonhold? Each unit-holder owns the freehold of their home, and a commonhold or residents’ association owns and manages the common parts of the property. Find out more about commonhold. The change allows leaseholders to dispense with their landlord and obtain a share of the freehold.

It works by giving each property owner in a block of flats equal rights to a part of the freehold along with an equal responsibility in the maintenance of shared areas.

There is no overall landlord. The commonhold association is responsible for maintaining the communal areas of the building. It is an alternative to the long leasehold system.

Unlike leasehold , there is no limit on how long you can own the property for. Commonhold is a new type of property ownership. A share of freehold is pretty much what you would imagine it to be, but there are a couple of different ways in which it can be set up.

The first is where the freehold is split jointly between a number of flat owners within the property and the freehold is held in their personal names. Conveyancing clients often get confused when they are interested in buying a flat which has a ‘share of freehold ’. The ‘share of freehold’ aspect is usually marketed heavily by the estate agents especially in London.

The confusion sometimes comes from the fact that ‘freehold flats’ are generally not considered good security for lenders an save in specific parts of the country, are unusual. It is intended primarily to benefit the occupiers of blocks of flats, and other interdependent buildings with shared services and common parts. It is not a compulsory regime and can be used for commercial, residential and mixed-use premises. Together, you hold the freehold for the building and can decide together about maintenance costs or repairs.

If you go house hunting, you may notice that for one property you have the opportunity to buy it freehold , whereas another is offered on a leasehold basis. It’s well known that people prefer freehold ownership. Although leases should last a lifetime or more, you have less control, plus there’s something unnerving about your home being held on a lease that will ultimately vanish, albeit extremely slowly, unless extended – which can, of course, prove expensive. It means decisions about work and costs can be taken by the leaseholders themselves, albeit by a democratic vote or a board of directors. Compare mortgages with lovemoney.

Technically existing blocks can be converted to commonhold. We have experience in even the most unusual of cases and are happy to talk you through the entire process. This means that when you buy a flat with a share of freehold , you will either be given that share by way of having your name on the deeds of the property, or you’ll be given a share in the company that is controlling the freehold. They are responsible for insuring and maintaining the building. Together they own the freehold and their names will appear on the deeds.

A company owns the freehold and each tenant owns a share of that company. England and Wales are the last countries in the developed world where. The freehold of each property in a commonhol referredto as a “unit” (such as a flat), is owned by a commonhold “unitowner”.

A “share of the freehold ” is a phrase which appears countless times in sales particulars up and down the country.

Freehold flat (in a commonhold building) - never. However, fewer than commonhold developments have been. I am really grateful for this advice - because for me the last option sounded as the best one) Please, tell me a few more things: 1. A group of flat owners can get together to buy the freehold from the lan establishing an association to manage the property and its communal areas.

A unit will usually be an individual flat, and can also include areas such as a garage or a parking space. All other parts of the building, such as the stairs and entrance foyer, will be the common parts. The owner of each unit will own the freehold of that unit. A share of the freehold title in common with the other cross leaseholders.

A leasehold interest in the particular area and building that you occupy. These leases are usually for 9years for a nominal rent like cents per annum (which is usually not demanded to be paid).